Impact Healthcare REIT rides rent increases to boost portfolio value
A second quarter dividend of 1.69p was declared, in line with the 3.5% increase targeted for the year of 6.77 pence per share. Credit: iStock
In its interim results, observing the six months ending 30 June 2023, the company revealed this led to an NAV increase of 5.6% to £471m, with a total accounting return for the period of 6.2%.
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Profits before tax increased slightly by 1.1% to £27.6m when compared with the same period the year before though this was a big jump from figures at the end of the trust's financial year in December (£16.9m).
A second quarter dividend of 1.69p was declared, in line with the 3.5% increase targeted for the year of 6.77 pence per share.
Meanwhile, the trust added six high quality care homes on attractive terms to its portfolio and sold one, so that it now owns 140 properties with 7,725 beds.
Chair Simon Laffin, said: «We maintained a strong balance sheet, with £250m of committed debt facilities and a weighted average term of 6.8 years. Our drawn debt was £190.8m, giving us a gross loan-to-value of 28.5% and a net loan-to-value of 27.6%.»
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Commenting on the rent increases, which have affected the public nationwide in all areas of the property market, Laffin said the «vast majority of rent increases are capped at 4%, [providing] much needed respite to tenants, suffering general inflation of 9.3% and in many cases, even higher wage costs».
«Our tenant operators generally managed to increase fees, improved occupancy to 88.3% and most benefited from low or zero leverage,» he added.
«As a result, our annual adjusted rent cover improved slightly to 1.8x. The affordability of our rent to
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